Australian Dollar (AUD) is likely to trade in a range of 0.6480/0.6510. In the longer run, slight increase in upward momentum is likely to lead to a higher range of 0.6440/0.6540 rather than a sustained advance, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Slight increase in upward momentum

24-HOUR VIEW: "While we expected 'further range trading' yesterday, we stated that 'the softer underlying tone suggests a lower range of 0.6455/0.6505.' However, AUD traded in a narrower range than expected, dipping to a low of 0.6471 before rebounding to 0.6501. AUD closed slightly higher at 0.6495, up 0.19%. While we continue to expect range-trading, this time around, the firmer underlying tone suggests a higher range of 0.6480/0.6510."

1-3 WEEKS VIEW: "Our update from two days ago (25 Aug, spot at 0.6485) still stands. As highlighted, after last Friday’s price movements, 'there has been an increase in upward momentum, but not significantly, and this is likely to lead to a higher range of 0.6440/0.6540 rather than a sustained advance.”